Question: . . 1 3 . 9 The S&OP team at Kansas Furniture has received the following estimates of demand requirements: Plan A: Produce at a

..13.9 The S&OP team at Kansas Furniture has received the following estimates of demand requirements:
Plan A: Produce at a steady rate (equal to minimum requirements) of 1,000 units per month and subcontract additional units at a $60 per unit premium cost.
cut back.
production of 1,000 in August to 1,200 in September requires hiring [and related costs] of 200 units in September). PX
b. Which plan is best and why?The S&OP team at Kansas Furniture, has received the following estimates of demand requirements:
 ..13.9 The S&OP team at Kansas Furniture has received the following

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